The dollar's decline over the week
The dollar fell on Friday to its lowest level since two months amid growing confidence about global economic growth against the backdrop of China to allow its currency to rise to 6.5815, a new record. And increased spreads between the greenback and other major currencies during last week with growing optimism about economic growth and growing speculation higher interest rates in Europe and the United Kingdom, which led to the exposure of the dollar to more pressure. And the impact of the significant improvement in the business confidence index in Germany, prepared by the Institute "IFO", the euro rose to 1.3626, its highest level in two months. After trading opened at 1.3390 on Monday morning, during the day fell to 1.3245 then progress steadily over the following days to close on Friday evening at 1.3621. The pound took a path parallel to the path of the euro, benefiting from higher rates of return as inflationary pressures led to speculation that the Bank of England forced to raise interest rates sooner than had been expected. The pound has been trading at levels higher than 1.6050 on Tuesday before closing at the end of trading on Friday at 1.6000, recording a gain of 0.8% during the week. And well as Japanese Njuhalin in strengthening his position against the U.S. currency rose to 81.85 against the dollar before losing some of its gains and closed at 82.87 at the end of the week.
Disparate data for the housing sector
Still the housing sector sends mixed signals but they are still a whole indicate continued weakness in the sector after more than a year at the beginning of the economic recovery in the United States, has fallen Housing starts increased by 4.3% to reach annual rate to 529,000 units, the lowest level for this the index since October 2009. In parallel, the number of building permits jumped, an indicator used to estimate the movement of construction in the future, up to a monthly average of 16.7% in the month of December, reflecting the attempts that have been made during the month to get approvals before the end of the year. Finally, new home purchases rose by 12% to reach 5.28 million units on an annual basis, the performance exceeded market expectations. There is no doubt that the sales volume positively affected endeavor of buyers to take advantage of low interest rates on mortgages before they result in the continuation of the economic recovery to increase borrowing costs.
Lower jobless claims
Decreased over the past week, unexpectedly rose more than forecast, the number of Americans who applied for the first time claims for compensation for the loss of their jobs, in what is considered another indication that the labor market may have started to improve. The number of jobless claims by 37,000 claims in the week ending January 15, up to 404.000 claim, noting that expectations among market had unanimously 425.000 claim, and the unemployment rate reached 9.4%, according to the latest reports.
Eurozone
In Germany ...
Business confidence index at its highest level since 20 years
Benchmark German business confidence in December to its highest level since two decades thereby adding new signs that the recovery in Europe's biggest economy has become more and more dependent on domestic demand, the business environment index prepared by the German Economic Institute (IFO) to 110.3 points in January, compared with 109.8 points in the previous month. It should be noted that the German economy has achieved a great leap and strong over the past year where it came from increased exports accompanied by signs of strong alleged improvement in domestic demand, which may be behind the government's decision this week raised its economic growth forecast in 2011 to 2.3%.
In Europe ...
Consumer confidence down again
Consumer confidence fell in seventeen countries that make up the euro zone and in the month of January for the second month in a row, hitting the lowest level since August 2010. The consumer confidence index fell to 11.4-during the month compared to 11 - in December, which was also the number that were among the market expects.
United Kingdom
Inflation at its highest level since 8 months
Acceleration of inflation and rates exceeded the expectations of economic observers to reach an annual rate of 3.7% on the back of rising fuel and food prices, thereby adding further pressure on the Bank of England to raise interest rates sooner than had been expected. The prices during the month rose by 1%, the largest increase recorded in any one month since the start of the use of this index in 1996, while the core inflation rate was 2.9% on an annual basis. Given that the level of inflation is higher than the target level of 3%, should have become the governor of the Bank of England to draw a book years explaining this rise. At the same time, said members of the British House of Commons and who are bent on the performance audit of the Bank of England that they are worried about rising prices and accelerated want to hear assurances from the Bank of England that the bank did not lose control of inflation.
In a separate development, the index of retail price inflation, a measure of the cost of living is used Riisie in negotiations on wages, to 4.8% in December, compared with 4.7% in the previous month.
Improved consumer confidence
Consumer confidence index rose in the United Kingdom from the lowest level in 20 months during the month of December with the expectation that the British significant raced to buy household goods before the start of the application of the planned increase to the sales tax. This index rose 8 points to 53 points, in the first recorded gains in four months while the value-added tax on sales of goods and services increased by 2.5% up to 20% on Jan. 4.
Unemployment remains at 7.9%
There has been no change in the unemployment rate, which is measured according to the standards of the International Labour Organization (ILO), where he settled at the level of 7.9% for the three months to the end of November, compared with 10.1% in the euro area and 9.4% in the U.S. and 5.1% in Japan. It should be noted that the new government is betting on the continuation of the private sector in creating new jobs at a time when the government is preparing to dispense with 330,000 employees in the public sector over the next four years. Separately, a decline in the month of December, and unexpectedly, the number of claims for unemployment to its lowest level in 21 months, and reached this downturn 4.100 claim to decrease the total number of claims to 1.457 million claims. The Office for National Statistics report that the unemployment rate in the age group of 16 - 24 years old now reached its highest level since 1992.
Retail sales decline
Snowfall between the hammer and the anvil of rising prices
Although the holiday shopping season on the occasion of holidays in Britain, retail sales biggest decline during the month of December influenced heavily falling snow and high prices, the sales decreased by 0.8% during the month compared with a rise of 0.4% in the previous month and also the expectations of decline of 0.2%. It should be noted that sales have not changed from a year earlier, noted that December was the coldest month that in the United Kingdom since the century.
Japan
Continued decline in consumer confidence
A survey showed consumer confidence in Japan this indicator fell for the sixth consecutive month, falling to 40.1 points in December from 40.4 points in November, weighed down consumer concern about the chances of retaining their jobs. The prime minister's office announced that it is still at the previous appreciation of the situation is that "consumer confidence has become less powerful." Among the factors that attributed to the this retreat weak desire to buy durable goods on the one hand and the working conditions have become more difficult than the other.
World News
For the ninth month in a row China's property prices continue to rise
Property prices rose in 70 Chinese cities rose 6.4% in December from a year earlier and down 0.3% compared to the previous month. It is expected to result in higher prices to the growing concerns that the resort on the government to tighten restrictions designed to reduce the risk of a bubble property and that by raising the benchmark interest rate and raise the capital requirements imposed on banks, note that the prices of existing homes rose 0.5% in December, In its biggest rise in three months.
Acceleration of economic growth in China coincides with the decline in inflation
Acceleration of the rate of real economic growth in China to reach 9.8% rise in retail sales and industrial production, surpassing the 9.4% agreed by the expectations of the market as well as the growth rate of 9.6% in the previous quarter. Separately, slowed consumer price index (CPI) for up to 4.6% on an annual basis in December, compared with 5.1% in the month of November, which was the highest rate since 28 months.
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